QUESTION
What are my options if I am disabled and need to file bankruptcy again since there is no way I can pay anybody at all and settle any of this debt?
Asked on Aug 13th, 2014 on Bankruptcy - Virginia
More details to this question:
I was working and filed for chapter 7 bankruptcy in August 2008 and was discharged in December 2008. Since then, I became a 100% disabled veteran, and recently approved for SSDI (yesterday) but it hasn't started yet. But while waiting on VA, I didn't work and now I am being sued, I have an order for hearing on assets by a creditor.
10 ANSWERS
You can not file for bk again until 8 years pass but also your ssd can not be garnished.
Answered on Aug 15th, 2014 at 8:42 AM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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You cannot get more than one bankruptcy discharge within a period of 8 years. Sounds like your income is or will be of the type that is exempt from the creditor's reach. Depending on whether you own any assets you may be considered "judgment proof". Judgment proof doesn't mean you can't get sued only that there is nothing to collect against. If you are being summoned to appear in court and disclose assets be sure to attend, it's not optional.
Answered on Aug 15th, 2014 at 5:22 AM
You are judgment proof. Don't worry about refiling. The creditors can not touch your disability money. They can get a piece of paper called a judgment, but if you have no assets they can touch, there is no way to satisfy the judgment. After a while, the creditors will give up. If you insist on filing, you can file a Chapter 13. You will be required to make a monthly payment of some amount ($100 per month for example), for 36 months. After 36 months the balance of any debts still owed are discharged. Good luck!! (and thank you for your service. I served in the Infantry in Viet Nam).
Answered on Aug 14th, 2014 at 7:17 PM
Deborah F. Bowinski
You are not yet eligible to file another chapter 7 bankruptcy case. In theory you could file a chapter 13 case, but it sounds as though you do not have a realistic ability to fund a chapter 13 plan. If you are receiving SSDI then those funds will be protected from garnishment for most consumer debt obligations. There may not be a need to file another case if you do not have much in the way of positive net worth. A consultation with an attorney might give you some additional information regarding your options.
Answered on Aug 14th, 2014 at 7:15 PM
You will not be eligible to file a Chapter 7 bankruptcy until eight (8) years has passed since your prior filing, which should be in August,2016. You could file a Chapter 13 now, but Chapter 13 may be problematic given your limited income. Speak to competent bankruptcy counsel in your area to see if you are "judgment-proof" now. A judgment creditor will not be able to seize your SSDI. If you have no other assets (i.e., judgment-proof) maybe you can hold out until August, 2016 and file a Chapter 7 then.
Answered on Aug 14th, 2014 at 7:14 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Your options are to wait 2 years until August 2016 and file another Chapter 7 or to file a Chapter 13 and make payments for at least 3 years.
Answered on Aug 14th, 2014 at 7:14 PM
If you need to file now, and can't wait two more years, you will need to file a Chapter 13 bankruptcy. Please consult a local bankruptcy attorney where you live to discuss your situation.
Answered on Aug 14th, 2014 at 7:07 PM
Your VA disability benefits are protected from creditors under federal law. Just make sure that you don't deposit this money into an account that contains money from any other source. Discuss the protection help that you need with the bank manager, and if you aren't happy with the answers you get, go to another bank where your bank will stand by you.
Answered on Aug 14th, 2014 at 1:12 PM
Although you are not eligible to file Chapter 7 again, you could qualify for Chapter 13 or you could be "judgment-proof" if you have no assets and your only source of income is disability. You need legal counsel immediately before going to the creditor's hearing, and many lawyers offer a free initial consultation to help you determine the best response to the hearing request.
Answered on Aug 14th, 2014 at 12:21 PM